Global oilfield, manufactured products and equipment company High, early exposure to NAM recovery Free cash flow Strong balance sheet Scalable operations and low capex requirements Investment Thesis Confidential 3
Improve operational efficiency Develop new products Expand commercial presence High incremental margins in a recovery Disciplined acquisition strategy Positioning for the Upturn Confidential 4
Manufacturing excellence Plant consolidations - Centers of excellence On time delivery & shorten lead times Lower cost base Supply chain Supplier rationalization Sourcing technology e-sourcing Significant procurement savings…
Quality Management Systems Industry certifications (API/ISO/ASME) Customer audits Improved safety performance Lean Techniques Labor and material savings Work flow savings Inventory reductions Quality and Lean Initiatives…
NEW PRODUCT DEVELOPMENT
Customers as design partners Lean manufacturing part of design Standardization Cross product line design Value Engineering Confidential 8
OTD Catwalk J3000 Frac Pump Coiled Tubing Pipeline Accommodates higher rig floors 3000 HP Reduces install time by 60% Continuous tubular running Continuous duty 97% less connections/mile Reduces NPT Light weight Reduced risks to…
FREE CASH FLOW
2016 Focus Working capital reduction Lower capital expenditures ( millions) 2015 2014 2013 Free cash flow, before acquisitions Net income (119) 174 129 Depreciation and amortization 66 65 61 Goodwill and intangible asset…
Cumulative Free Cash Flow - 741 million and Net Income - 629 million 800 700 600 500 400 Net Income FCF 300 200 100 - 2009 2010 2011 2012 2013 2014 2015 Free Cash Flow History Note: Free Cash Flow is a…
( millions) 12/31/15 12/31/14 Capitalization 6.25% Senior unsecured notes due October 2021 400 400 Senior secured revolving credit facility (600mm) - 25 Other debt - 1 Total debt 400 426 Total equity 1,257 1,396 Total…
Middle Canada Latin East 5% America 6% 5% Asia Pacific 6% Europe Early exposure to NAM recovery Africa United 18% States 60% Geography Activity- based equipment 14% Weighting towards Consumable products Consumable…
COGS labor and overhead savings - 125 million per year 20% reduction in manufacturing global footprint Procurement savings of 16 -18% from 2014 50% consolidation of NA service centers SG&A savings - 94 million per year Controllable…
Strong financial position and liquidity Free cash flow generation for enhanced shareholder value New product development Focused and disciplined M&A Balanced and diverse portfolio mix Preserving capability Cost reductions and…
QUESTIONS
Well Construction Stimulation & Drilling Subsea Construction Production Infrastructure & Completion Intervention & Development Business Drivers Well Count and Well Construction Rig Count Subsea Activity Valves 35% 30% 20% 15%…
Global oilfield, manufactured products Leveraged to attractive secular growth trends Strong brand and market position Activity-based, consumable products High Growth International Expansion Focused Acquisition…
Middle Canada Latin East Activity- 5% based America 6% 5% equipment 14% Asia Pacific Capital Consumable 6% Europe Products Products Africa United & 50% 18% States Equipment 60% 34% Other 2% Geography Purchase Cycle…
Mission Critical Drilling Capital Equipment Drilling Consumable Product Suite Mousehole tool XL Backsaver 1,000 ton hydraulic elevator Wrangler Catwalk Blohm + Voss Oil Tools FLOORHAND Casing slip 125 ton air spider Drill…
Largest range of Perry and Sub-Atlantic brands ROVs in industry VMax Simulation Systems Hot Stabs Tether Trenchers Management Systems ROV Components PIG launchers LARS Subsea Technologies Drilling and Subsea…
Flow Equipment Production & Infrastructure Segment Confidential 24
Heater Treater Separators Tanks Well Manifold Production Equipment Production & Infrastructure Segment Confidential 25
Two piece trunnion valves for the shale markets Specified ball valve of choice for the US Strategic Petroleum Reserve Preferred valve supplier to leading Canadian oil sands producers Valve Solutions Production &…
Loading...
